Your queries answered by DOMINIC COYLE

Can I claim for college fees?

Q

I have a question on the 20 per cent tax relief on approved college fees. I was made redundant in early 2009

(having worked for 10 years) and received Jobseekers Benefit for the rest of 2009.

In February 2010, I commenced part-time education on an approved course and paid approx € 3,000 in fees in 2010. I took part in the FÁS work placement programme in 2010 and received Jobseekers Allowance.

I returned to full-time paid work (trainee role) in February 2011 and continue with my studies, paying approx €2,500 fees this year.

My question is, am I entitled to claim for the fees paid in 2010 despite not paying any tax that year? Or is it a non refundable tax credit?

- MR WG, e-mail

A

As long as your course is among those qualifying for on third level fees, you can claim relief at

20 per cent.

However, clearly, if you have no taxable income, you have nothing against which you can claim relief and unlike, for instance, capital losses, you can not carry them from one year to another.

For what it is worth, since 2007, the relief does not have to be claimed by you. If the fees were paid by a third party, they will be able to claim the relief.

Weekly mortgage payments not working?

Q

Following Conor Pope’s article on making mortgage payments on a weekly/fortnightly basis, I spoke with my bank (KBC) and confirmed that I could make these payments and organised to do so on a weekly basis.

I checked about a month ago to see what impact this was having on my outstanding capital.

They told me that they were receiving the payments on a weekly basis but were only taking it off the capital/interest on the usual monthly basis! They noted that the article had caused a lot of confusion. I wasn’t confused – and they had initially confirmed that they could do it.

Is there any regulatory requirement for KBC to deduct my payments off the capital/interest more frequently then monthly?

- Ms PG, Sligo

A

It all comes down to what it says on the mortgage contract. It may well be that the lender acknowledged it was possible to make weekly payments but was moot on the issue of when these payments would be credited immediately against your mortgage account.

Of course, unless they are immediately credited to your account, you are effectively giving the bank free use of your cash for up to three weeks.

There is no regulatory requirement for KBC, or any lender, to offset payments against a mortgage more regularly than under the terms of the mortgage contract and I would be surprised if any did it weekly.

You could argue that KBC might have been more clear at the time it told you it could accept weekly payments as to when they would be credited to your account.

Equally, you probably should have ensured you had agreement in writing from the bank that they were setting your payments against the mortgage on a weekly basis.

This column is a reader service and is not intended to replace professional advice. No personal correspondence will be entered into.